Reserve Bank cuts interest rate to ‘unprecedented’ 0.10 per cent!
Reserve Bank Cuts Interest Rate to ‘Unprecedented’ 0.10 Per Cent
dust on 03/11/2020 - 14:39
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0.10 per cent
Good, but not low enough.
Negative in 2021?
I don't have a crystal ball, but it would be wise to start to hedge against it.
quite possible. We will see variable under 1.99% for sure.
At least the savings rates are up.
That doesn't mean anything for the economy.
This is more a confidence play by the RBA. Sends a positive signal of assurance and careful economic management, while knowing it will have very little impact as an economic stumulus as rates are already so low. I'll be pleasantly surprised if the majors pass this on.
I expect reading the following headline on Monday and our RBA overlords being ok about it:
'Bondi 1br pad sells for 700k over reserve'
lets not kid ourselves with whom this benefits….
I implore people to look at the board.
They will find:
One of the blokes there made millions (in the tens of millions) from the Dick Smith IPO.
One of the ladies inherited a hole heap of money from rich daddy, she owns multiple property businesses.
Those two people being on the board alone is enough for me to not trust that mob.
Is this not the fault of people stupid enough to spend this much money on a 1br apartment?
So true!!!
The liberal national party have no idea how to manage Australia
Record debt almost at a trillion dollars https://www.aofm.gov.au/
Not one major thing for their seven years of management
Over eighty billion for lead acid submarines to be delivered sometime in 2050
Canned the NBN bought thousands and thousands of kilometers of copper All to be obsolete when 90% finished
Rort after rort lie after lie
Now the lowest interest rates on record https://twitter.com/MichaelPascoe01/status/11459308359269457…They have tripled the debt since being in power
Reap what you sow AustraliaSo which party has a 'better' idea how to manage Australia? Not saying that your facts are wrong, but check the trends across the globe and over the years - a significant portion of society always feels that the opposition can do it better. But really? Worth assessing.
The Greens.
Can't tell if serious. They have some good policies, and some absolute rubbish.
4 upvotes 1 downvote. Interested to see how that pans out.
At least people get their tax cuts with the LNP. /s
Still seething over the NBN, what a (profanity) joke. I'm sure the Labor solution would have blown the budget but at least it'd be somewhat good. We have a piece of shit network that still blew the budget.
Incoming savings account rate cuts in 3…2…1….
Is it just me that thinks when the rates are that low, and saving is not encouraged, that it makes little sense to move into stocks precisely because the economy is struggling. If the economy were strong and healthy, rates would not be near zero. Fact check? Nonsense? What says the intelligencia?
Now investigate credit card interest rates.
High-risk lending requires a higher interest rate.
I get that. But even so, when were any of those rates actually cut?
There is no reason to cut them.
If you don't like the rates, don't use the card?
@whodidthat: What's the point then exactly? The bank can charge whatever the market will pay, and as credit cards are unsecured, they are relatively high risk, which means higher rates to cover the people defaulting. You are by all means welcome to start your own financial institution, and charge whatever rate for credit cards you deem fit.
@brendanm: It's pointless coming out with ridiculous comments like that. I think my point is rather obvious to most.
@whodidthat: You haven't made a statement yet. Others shouldn't get themselves into situations where they rely on 20% credit. There are also plenty of low rate cards around.
@brendanm: Dear oh dear, I'm sorry you missed my statement.
Now investigate credit card interest rates.
@whodidthat: You are very special, I'll give you that.
Credit card interest rates range from 8.99% to approx 22%. Investigation complete.
If you don't like 22%, choose 8.99%.
I will await my gold star for "best credit card rate investigator 2020".
Yep, 21%+ is just thievery. Most would accept 11% or so as fair
You could always use cash or a debit card.
Looks like there are actually an awful lot of people who accept 20+%. No one is forcing you to use the card, or forcing you not to pay it off at the end of the interest free period.
To quote a famous man (probably Dave Ramsey):
'Credit cards are the cigarettes of the financial world'.
They are already starting to be the phased out with the rise of Afterpay, Zip, Clarna etc…
Worse still, they are forecasting 3 years of it.
That's not the only one mentioned.
Athena Home Loans
How many Athena Home Loans are there in Australia?
Seems to me low ultra low interest rates are not saving the world, could be wrong but I think things were better when rates where higher not 16% high but 4 or 5%.
At least then you could make a bit of interest on savings and super. Many counties have had 0 interest rates for years and they are still in trouble Japan being just one.I know what you mean.
Sadly, so much is in a mess because of a few things. It's going to take some time to sort it all out. Doesn't seem to be any right or wrong way at the moment 😞
Yes, there's varying results predicted
The world is in shit, that's why rates are 0%.
The world is in shit, but not because rates are 0%. Things were better at 4%, it's a better equilibrium.0% is a symptom, not a cause of the shitting.
That pretty low!
Throw everything to keep the housing market going….
Yep that seems to be one of the governments answer to every thing, guess they ignore the fact that not everyone is buying a house, I think the figure is around 30% have a home lone. Doesn't matter what the rates are if you don't have a fulltime job you can't afford to buy a house, governments and unions have been putting manufacturing out of business in this country for the last 50 years.
There fix now seems to be increase the population! how well is that working? time will tell. As said earlier 80+ billion submarines has to be one of the biggest waste of money ever, add Snowy 2 to that list to there's no water to run it if there was they could be using the system that is there now more. They dig up coal and uranium for export but are to weak to use it in this country to produce cheaper power.
But…. but… you still had to take a loan out in an enormously artificially inflated market.
This inflated market is devised to convey the perception of worth.
.01% is a joke, and the joke is on you with a debt of 850k +When in the last 30 years was the market not inflated?
If the market is always inflated, it is not inflated.
Am I the only who thinks the days of Interest rates going up is never going to happen? or at least not for the next 10 years?
Initially I thought rates won't go above 3%, but now it's looking like they'll hover around 2% for at least 5 years.
I just can't see people in Vic and Syd (bulk of our population) paying 3%+ on their $1m home loans.
Be prepared for the cash rate to go to ZERO in 2021.
Hey, you said you didn't have a crystal ball?!?
Heh. I still don't.
I got caught with my pants down in March. It's not going to happen again.
@whooah1979: This is going to be the norm for quite a few years unless there is a big change world wide I would say. Switzerland has had minus rates since 2015. Just don't see how they can go minus as it would appear that the lender is losing money. This article try's to explain it but I'm still lost. https://www.imf.org/external/pubs/ft/fandd/2020/03/what-are-…
This gives a good idea what the rest of the world is doing. http://www.cbrates.com/
@BillS2: The lenders buy overnight securities from borrowers that are then purchased back the next day. The difference is how they make money. The lower cash rate is an excuse for the lenders to cut the rate on deposits.
@whooah1979: Thanks, it's good to see someone's make money out of this I think! Maybe one should invest in Argentina 37% interest, not sure what happening over there but on second thought's probably not good either.
Cash is cheap! Spend up everyone! Lol.